U.S. Stock Index Futures Rise Slightly

U.S. stock index futures rose slightly in evening deals on Thursday after hotter-than-expected consumer inflation spurred a mildly negative session on Wall Street.

Focus was on the third quarter earnings season, set to start in earnest on Friday. Investors were also watching for the much-anticipated reveal of Tesla’s robotaxi.

• S&P 500 Futures rose 0.1% to 5,834.75 points.
• Nasdaq 100 Futures rose 0.1% to 20,453.50 points by 19:10 ET (23:10 GMT).
• Dow Jones Futures rose 0.1% to 42,782.0 points.

Strong CPI Data Spurs Bets on Smaller Rate Cut

Consumer price index (CPI) inflation data was stronger-than-expected for September, indicating that inflation eased during the month but not as much as anticipated.

This data fueled bets that the Federal Reserve would have less incentive to cut interest rates rapidly, with traders pricing in a greater chance for a 25 basis point cut in November following the release.

Comments from Fed officials, including Atlanta Fed President Raphael Bostic, suggested that a hold in November might also be a consideration.

A slower pace of interest rate cuts could pose pressure on Wall Street, especially since U.S. stock valuations reached record highs based on expectations of significant rate reductions.

The producer price index (PPI) inflation data due on Friday is expected to provide more economic insights, alongside a reading on consumer sentiment.

However, expectations for a smaller cut were somewhat moderated due to higher-than-expected weekly jobless claims data. Weakness in the labor market is likely to keep the Fed on an easing path.

This sentiment limited overall losses on Wall Street, aided by gains in some heavyweight tech stocks. The S&P 500 dropped 0.2% to 5,780.05 points, while the NASDAQ Composite remained flat at 18,283.90 points. The Dow Jones Industrial Average fell 0.1% to 42,454.12 points.

Q3 Earnings, Tesla Robotaxi Reveal in Focus

Investor attention now shifts to the third quarter earnings season. Major banks like JPMorgan Chase & Co, Wells Fargo & Company, and Bank of New York Mellon are set to report earnings on Friday.

Next week, Goldman Sachs Group Inc, Bank of America Corp, and Citigroup Inc will report.

Tesla Inc steadied in aftermarket trading ahead of the robotaxi reveal scheduled for 22:00 ET (02:00 GMT) on Thursday. This reveal is expected to symbolize Tesla's shift towards autonomous driving and artificial intelligence while the company struggles with a steady decline in vehicle sales.